Question 1
2 out of 2 points
Normally, when buying a business, the seller:
Question 2
2 out of 2 points
The biggest source for the best companies to buy is:
Question 3
2 out of 2 points
Before buying an existing business, the buyer should analyze
two external elements of the business:
Question 4
2 out of 2 points
The inventory in an existing business:
Question 5
2 out of 2 points
The capitalized earnings approach determines the value of a
business by capitalizing its expected profits using:
Question 6
2 out of 2 points
When a buyer is reviewing a candidate company’s lease
arrangements, location and appearance, intangible assets, etc., he is answering
what basic acquisition question?
Question 7
2 out of 2 points
Once an entrepreneur has evaluated him/herself, the next step
in the acquisition process would be to:
Question 9
2 out of 2 points
Which of the following is an intangible asset?
Question 10
2 out of 2 points
If the firm owns any trademarks, patents, or copyrights, or
has built up a positive reputation with customers and suppliers, the business
has what is/are called:
Question 11
2 out of 2 points
Which of the following is a way to smooth the transition of
leadership/management from the seller of a business to the buyer?
Question 12
2 out of 2 points
When the buyer is examining the income statements, tax
returns, and balance sheets of the business, he/she is seeking an answer to the
basic question:
Question 13
2 out of 2 points
When buying an existing business, one should remember that:
Question 14
2 out of 2 points
When it comes to buying an existing business, it is not
uncommon to find it:
Question 15
2 out of 2 points
The valuation method that is commonly used, but tends to
oversimplify the valuation process, is called:
Question 16
2 out of 2 points
Your cash budget and an explanation of how much money you
need to make your company and product a long-term success are the subject
matter of the:
Question 17
2 out of 2 points
A well-developed business plan provides the entrepreneur with
a number of benefits, such as:
Question 18
2 out of 2 points
Defining the target market’s potential and describing its
characteristics is part of the:
Question 19
2 out of 2 points
The second essential purpose for creating a business plan is:
Question 20
2 out of 2 points
The primary purpose of building a business plan is to:
Question 21
2 out of 2 points
________ are long-range, broad statements of what the company
plans to accomplish in the distant future, and they guide the overall direction
of the company.
Question 22
2 out of 2 points
The ________ becomes the document that summarizes the
analysis that has been done to justify a new business.
Question 23
2 out of 2 points
Proving that a profitable market exists involves:
Question 24
2 out of 2 points
A business plan:
Question 25
2 out of 2 points
The C of the five Cs that is a synonym for “cash
flow” is:
Question 26
2 out of 2 points
A business plan performs a number of functions including:
Question 27
2 out of 2 points
The ________ is the first part of the business plan. It
summarizes all the relevant points of the deal, but it should be the last part
written.
Question 28
2 out of 2 points
The focus of the competitor analysis section of the business
plan is to:
Question 29
2 out of 2 points
A ________ is what a customer gains from the product or
service feature.
Question 30
2 out of 2 points
The C of the five Cs that relates to the circumstances
relating to the business, such as potential growth in the market, form of
ownership, location, etc., is called:
